Mongolia: Demonstration Project for Improved Electricity Services to the Low-Income Communities in Rural Areas

Sovereign Project | 42534-012

Summary

The proposed project aims to improve the quality of oife of the residents of bag centers (smallest administration unit) in Mongolia by providing reliable electricity supply to remote communities.The project is comprised of three components: component A (detailed field survey, baseline socioeconomic survey, and shortlisting demonstration bag centers); component B (construction of transmission and distribution lines using Single Wire Earth Return (SWER) technology in selected demonstration bag centers); and component C (project management, monitoring, auditing, and knowldge dissemination).

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Project Name Demonstration Project for Improved Electricity Services to the Low-Income Communities in Rural Areas
Project Number 42534-012
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 9139-MON: Demonstration Project for Improved Electricity Services to the Low-Income Communities in Rural Areas
Japan Fund for Poverty Reduction US$ 2.40 million
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming No gender elements
Description The proposed project aims to improve the quality of oife of the residents of bag centers (smallest administration unit) in Mongolia by providing reliable electricity supply to remote communities.The project is comprised of three components: component A (detailed field survey, baseline socioeconomic survey, and shortlisting demonstration bag centers); component B (construction of transmission and distribution lines using Single Wire Earth Return (SWER) technology in selected demonstration bag centers); and component C (project management, monitoring, auditing, and knowldge dissemination).
Project Rationale and Linkage to Country/Regional Strategy

Strategy 2020: The Long-Term Strategic Framework of the ADB 2008-promotion of inclusidve economic growth and poverty reduction is a key priority. By helping expand the basic energy supply in rural poor areas of Mongolia, the Project will support this key priority.

CSP: Mongolia 2006-2008 and CSPU Mongolia, 2007-2009 and COBP 2008-2010: The country strategy and program identified inclusive social development as one of the two strategic pillars, and lack of civic amenities (including electricity) as a constraint. A substantial improvement in the supply of electricity to disadvantaged communities will directly assist in supporting the country strategy and program priority.

Energy 2000 review of the energy sector policy of ADB: Poverty reduction by creating energy infrastructure for sustainable economic growth, increasing access to energy for the poor, particularly in rural areas, and making sure that the poor account for a major portion of beneficiaries in ADB projects is one of the operational priorities.

Impact Improved quality of life in bag centers
Project Outcome
Description of Outcome Extended electrification in rural areas using SWER system
Progress Toward Outcome Physical construction were completed and commissioned in December 2012.
Implementation Progress
Description of Project Outputs

(ii) SWER system is accepted by MMRE

(i) Electricity service is improved by using SWER system in the demonstration project area

(iii) Policy on rural electrification is recommended

Status of Implementation Progress (Outputs, Activities, and Issues) SWER system is currently in operation supplying electricity for the targeted 9 bag centers. Capacity development training and recommendation to expand rural elecrification using SWER system were conducted and submitted in April 2013.
Geographical Location Mongolia
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project will be implemented according to the environment management plan, and monitored according to the environment monitoring plan of the initial environmental examination
Involuntary Resettlement No impact. The Project will construct the electrical transmission and distribution networks. The size of the transmission pole is 50 cm in diameter and the line travels at a maximum of 50 km throughout barren land
Indigenous Peoples No impact. There are no indigenous people or ethnic minotirty groups present in project locations, and no adverse or significant impact on indigenous people and vulnerable groups
Stakeholder Communication, Participation, and Consultation
During Project Design Bag center government and residence, Ministry of Mineral Resources and Energy, Ministry of Finance, World Bank, GTZ, United Nations Development Programme, Embassy of Japan in Mongolia, and non-government organizations.
During Project Implementation The project involves the EA, the IA, and local villages in selection of target location. Capacity development program has involves the relevant stakeholders to scale up SWER system.
Business Opportunities
Consulting Services

The total input of international and national experts will be 12 and 44 person-months, respectively. The consultant will procure the office equipment and will deliver them to the EA at the conclusion of the Project. The consulting firm (including international and local consultants) will be recruited by ADB in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) in quality- and cost-based selection to provide the services for implementation, management and progress monitoring of the Project.

International Consultants (total of 12 person-months)

a. Electrical Engineer/Team Leader (6 person-months over the project implementation period)

b. SWER Design Specialist (2.5 person-months over the Project implementation period)

c. Protection and Safety Specialist (2.5 person-months over the project period)

d. Financial Specialist (1 person-month over the Project implementation period)

2. National Consultants (total of 44 person-months)

a. Electrical Engineer/Deputy Team Leader (13 person-months over the project period) will assist the team leader and Design Drawing and High Voltage Grid Specialists (international).

b. Design Drawing Specialist (6 person-months over the project period) will assist the team leader and Design Drawing Specialist (international).

c. High Voltage Grid Grounding Engineer (6 person-months over the project period)

d. Relay Protection and Automatics Engineer (6 person-months over the project period)

e. Project Account Management Specialist (6 person-months over the project period) will assist the team leader and Project Account Management Specialist (international).

f. Geodesy Specialist (3 person-months over the project period) will assist the team leader and the design drawings specialist.

Transmission Grid and Substation Engineer (4 person-months over the project period).

Procurement All procurements under the Project will be conducted in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Procurement of goods for the Project will be through international competitive bidding, national competitive bidding or shopping. Before commencement of procurement, ADB and the Grant Recipient will review the Grant Recipient's procurement procedures to ensure consistency with ADB requirements.
Responsible ADB Officer Shigeru Yamamura
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
Ministry of Mineral Resources and EnergyTserenpurev TUDEVenergy@mmre.energy.mnGovernment Building 2, United Nations Street 5/2, Ulaanbaatar 210646, Mongolia
Timetable
Concept Clearance 23 Dec 2008
Fact Finding 17 Feb 2009 to 22 Feb 2009
MRM -
Approval 09 Sep 2009
Last Review Mission -
PDS Creation Date 16 Jul 2009
Last PDS Update 20 Sep 2013

Grant 9139-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Sep 2009 09 Nov 2009 09 Nov 2009 28 Feb 2011 28 Apr 2013 05 Dec 2013
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.60 Cumulative Contract Awards
ADB 0.00 09 Sep 2009 0.00 2.16 90%
Counterpart 0.20 Cumulative Disbursements
Cofinancing 2.40 09 Sep 2009 0.00 2.16 90%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - Satisfactory

Evaluation Documents

See also: Independent Evaluation

No documents found.


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